Imagine this scenario: Seawall Enterprises, a rapidly growing business, hires an accounting firm to carry out an audit. The audit reveals that the office manager of Seawall has stolen a large sum of money from the company. She accomplished this by adding fictitious employees to the payroll and then taking the paychecks for herself. Since she had total control over payroll, no one else at the company knew.
Using the knowledge you gained this week, critique the system of internal controls in place for payroll at Seawall. Identify issues with the current process and recommend at least two changes that should be implemented to prevent this type of thing in the future.
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